Graphically, producer surplus is measured as the area
A) under the demand curve and below the actual price.
B) under the demand curve and above the actual price.
C) above the supply curve and above the actual price.
D) above the supply curve and below the actual price.

Question

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the actual price, representing the difference between what producers are willing to accept for a good or service versus what they actually receive.

Graphically, Producer Surplus Is Measured as the Area